By covering risks, known and unknown, Title Insurance enhances property purchases and mortgage finance in asset transactions, and Title Warranty Insurance enhances real estate M&A transactions. Similarly, Legal Indemnities cover known risks in UK property conveyances.
The policies also provide that the Insurer is responsible, at its own cost, for defending against any third party claims against the insured title.
In property and mortgage portfolio transactions, title insurance expedites the sales process, as bidders appreciate that they can minimize their legal due diligence and focus on the economic elements of the properties or the mortgages, and by covering potential risks, title insurance enhances the portfolio.
What lawyers provide is an opinion, which is a disclosure document, detailing the elements of, and risks to, the property title. What a Lloyd’s Title or Warranty Insurance policy provides is defence against claims and indemnity for loss.